- Oops!Something went wrong.Please try again later.
SkyWest's SKYW third-quarter 2020 earnings per share of 66 cents surpassed the Zacks Consensus Estimate by 57 cents. However, earnings declined 63.1% year over year due to coronavirus-induced low air-travel demand.
Moreover, quarterly revenues of $457.5 million plunged 39.8% year over year but surpassed the Zacks Consensus Estimate of $426.8 million. The COVID-19 pandemic caused a significant cut in the number of scheduled flights, thereby inducing the year-over-year decline in the top line.
Revenues from flying agreements (contributing 97.27% to the top line) decreased 39.7% from the year-ago quarter’s figure. Total expenses (on a reported basis) fell 37.6% to $382.94 million due to the reduced number of flights operated in the Jul-Sep period. The carrier, which carried 57.5% less passengers during the reported quarter, reported a 40.8% decline in block hours (a measure of aircraft utilization). Passenger load factor (percentage of seats filled by passengers) deteriorated 29.8 points to 54.1% in the September quarter due to the shrinkage in air-travel demand.
Meanwhile, SkyWest entered into an agreement with American Airlines AAL to place 20 used CRJ700s under a flying contract with the latter.
SkyWest, Inc. Price, Consensus and EPS Surprise
SkyWest, Inc. price-consensus-eps-surprise-chart | SkyWest, Inc. Quote
SkyWest, currently carrying a Zacks Rank #3 (Hold), exited the third quarter with cash and marketable securities of $822 million, up from $520 million at 2019 end. Long-term debt (net of current maturities) was $2.7 billion compared with $2.63 billion at 2019 end.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s take a look at some other Zacks Transportation sector companies’ third-quarter earnings.
Southwest Airlines LUV incurred a loss of $1.99 per share (excluding 3 cents from non-recurring items) in the third quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of $2.44. Moreover, operating revenues of $1,793 million surpassed the Zacks Consensus Estimate of $1,678.2 million.
Trinity Industries TRN reported third-quarter 2020 earnings (excluding 4 cents from non-recurring items) of 17 cents per share, massively surpassing the Zacks Consensus Estimate of 5 cents. Total revenues of $459.4 million also outperformed the Zacks Consensus Estimate of $443.8 million
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Trinity Industries, Inc. (TRN) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research